Vector Aerospace announces strong 2006 year end results



    TORONTO, ON, March 7 /CNW/ - Vector Aerospace Corporation (Vector) (TSX:
RNO) today announces unaudited results for the year ended December 31, 2006.
    

                                      Fourth Quarter           Twelve Months
    Operations (in millions of
     Canadian dollars):             2006        2005        2006        2005
                                ---------------------------------------------
      Revenue from continuing
       operations                 $ 83.2      $ 78.7     $ 332.2     $ 323.6
      Net earnings from
       continuing operations
       before interest, income
       taxes and unusual
       items                      $  6.3      $  5.9     $  27.0     $  22.4
      Net earnings                $  4.1      $  1.8     $  16.4     $  11.5

    Per Share:
      Weighted average number
       of common shares
       outstanding (millions)
        Basic                       37.2        34.3        37.1        34.2
        Diluted                     37.8        35.8        37.7        35.2

    Net earnings before
     interest, income
     taxes and unusual
     items
        Basic                     $ 0.17      $ 0.17     $  0.73     $  0.65
        Diluted                   $ 0.17      $ 0.16     $  0.72     $  0.64
    Net earnings
        Basic                     $ 0.11      $ 0.05     $  0.44     $  0.34
        Diluted                   $ 0.11      $ 0.05     $  0.44     $  0.33
    

    The unaudited consolidated financial statements and MD&A for the year
ended December 31, 2006 are available on the Company's website and on SEDAR.
    The Company generated consolidated revenue from continuing operations of
$332.2 million for 2006, an increase of $8.6 million from last year. Earnings
from continuing operations, before interest, tax, and unusual items, were
$27.0 million for 2006, an increase of $4.6 million from the prior year. The
earnings improvement in 2006 was primarily as a result of improved year over
year earnings at ACROHELIPRO, despite the negative impacts of the strong
Canadian dollar. Earnings at Sigma declined compared with the prior year and
Atlantic Turbines reported increased earnings in 2006 over 2005. Net earnings
for 2006 were $16.4 million ($0.44 per share) compared to $11.5 million ($0.34
per share) in the prior year.
    During 2006 the Company reduced debt by $22.7 million (excluding the
impact of foreign exchange) to $67.0 million as a result of scheduled debt
repayment and cash flows from operations.
    In commenting on the year's results, Chairman, President and CEO Donald
Jackson stated: "I am pleased with the 2006 results and the improvements over
2005 despite the rising Canadian dollar. Today Vector has a strong Balance
Sheet and is well positioned for growth. As we look to the future. Atlantic
Turbines reported increased revenues and earnings in 2006 and is expected to
do so again in 2007. Sigma's results for 2006 were disappointing, but
nevertheless expected with the delayed start of the Royal Saudi Air Force
contract which will begin in early 2007. ACROHELIPRO's reorganization in 2005
and increased revenues have had a positive impact on profitability in 2006 and
position the operations for growth in 2007. I am confident that the expected
growth in revenue for 2007 will result in another year of improved earnings."

    Analyst Conference Call

    Vector Aerospace Corporation will hold a 2007 conference call to take
place at 2:00 p.m. EST on Wednesday, March 7, 2007. The conference call will
review Vector's results for the year ended December 31, 2006. The scheduled
speakers for the Company on the conference call are Donald Jackson, Chairman,
President and Chief Executive Officer and Randal Levine, Senior Vice President
and Chief Financial Officer.
    To listen to the conference call, the North American dial-in number is
1-800-525-6384 and enter passcode 1542297. The international dial-in number is
(780) 409-1668. Please dial in approximately 5-10 minutes prior to the
4:30 p.m. Eastern start time.
    A replay service will be available immediately following the conference
call until midnight on March 14, 2007. To access this recording dial
1-800-374-8183 or 1-402-220-0881 and enter passcode 1542297.

    Vector Aerospace Corporation is an independent provider of aviation
repair and overhaul services. Through facilities in Canada, the United States
and the United Kingdom it provides services to commercial and military
customers for various types of gas turbine engines, components and helicopter
airframes. It also provides information technology solutions to an
international customer base. Principal operations include Atlantic Turbines,
Sigma Aerospace, ACROHELIPRO Global Services and Pathix. The Company has
approximately 1,100 employees.

    Forward-looking Statements

    This news release, which includes the attached management's discussion
and analysis of financial condition and results of operations, contains
various forward-looking statements. These statements contain words or phrases
such as "anticipate", "could", "expect", "seek", "may", "intend", "will",
"look forward", "outlook", "believes", "targeting", "feel" and similar
expressions that are based on current expectations, estimates, projections,
and targets related to the markets in which Vector Aerospace Corporation
operates and with respect to its financial condition, results of operations,
and the general business of the Company.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties that the forecasts, targets and assumptions will not be
achieved. Indeed, the forward-looking statements may differ materially from
actual results or events. Readers are cautioned, therefore, not to place undue
reliance on these statements as a number of important factors could cause
actual results to differ materially from those expressed in such
forward-looking statements. These factors include, without limitation, global
and local political and economic uncertainty, to realize production changes,
cost reductions and restructuring initiatives throughout the Company. Readers
should also refer to the Company's continuous disclosure materials filed with
Canadian Securities Regulatory Authorities for additional information with
respect to certain of these risk factors. The Company disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.

    Annual 2006 Consolidated Financial Statements and MD&A

    The Company's complete annual consolidated financial statements for the
year ended December 31, 2006 and notes thereto, together with management's
discussion and analysis of financial condition and results of operations
("MD&A") to be included in the Company's Annual Report for the year ended
December 31, 2006 (the "2006 Annual Report") will be released by the end of
March 2007. The overview of financial condition and results of operations
included in this news release should be read in conjunction with the 2006
Annual Report which will be available on the Company's website and on SEDAR.




For further information:

For further information: Donald K. Jackson, Chairman, President & CEO,
Toronto, Ontario, (416) 925-1143; Randal L. Levine, Senior Vice-President and
Chief Financial Officer, Toronto, Ontario, (416) 925-1143; Website:
www.vectoraerospace.ca

Organization Profile

VECTOR AEROSPACE CORPORATION

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